Change in Nomination in PF and Gratuity - What are the various forms we all have to fill?

Dear All,

I have a query regarding the Nomination in PF and Gratuity. As per my knowledge, an employee's nomination in both cases is automatically canceled when they acquire a family. If the nomination was previously for someone other than the wife, such as the father, mother, or another person, what process should we follow in this case? What are the various forms that we need to fill out for PF and Gratuity to make this change?

I would appreciate your prompt response.

Dear,

We have to take fresh nominations for Form 2 for PF and Form F for gratuity.

Thanks,
J. S. Malik

Hi Mr. Malik,

Thank you for your prompt response. Is it possible for someone else to be nominated in the PF besides the family members, such as the wife and children? Does the definition of family differ between the PF and the ESIC Act?

Please advise.

With Warm Regards, Ranjeet

An outsider can also become a nominee, but under normal circumstances, a spouse and children are supposed to be nominees. Under the Employees Provident Fund (as well as ESI), family may include dependent parents, whereas under the Pension Fund, it is restricted to spouse and children only. Therefore, it is always advisable to get the name of the spouse as a nominee if he has not nominated anybody before his/her marriage.

Regards, Madhu.T.K

Dear Ranjeet,

According to The Payment Gratuity Act & Rules, an employee who has completed one year of service shall submit a nomination in Form "F" to the employer. If he/she did not have a family at the time of making a nomination, they shall, within 90 days of acquiring a family, submit a fresh nomination in Form "G" to the employer. Modification of the nomination may be made by submitting Form "H". This information is based on The Haryana Payment Of Gratuity Rules, 1972. There may be slight changes in your State/Central Rules in the names of different formats. Therefore, it is advisable to go through your State/Central Rules, whichever is applicable in your case, before taking any action in this regard.

Regards,

R.N.Khola

(Labour Law & Legal Consultants)
09810405361

Dear Mr. Madhu & Mr. Khosla,

Thank you for the information. Could you please clarify the amount an outsider is eligible for in the case of a nominee? If a person does not have any family, does the person nominated still fall within the definition of family?

For example, one of my employees nominated her nephew as a nominee, but she is not married yet. Does her nephew fall under the definition of family?

Mr. Khosla, is Form H applicable for the associates from whom gratuity comes from the trust? Please advise.

With warm regards,

Ranjeet

Until her marriage, the nomination of the nephew will prevail. In the event of any unfortunate circumstance, any payable amount will be given to the nominated nephew.

Regards,
Madhu.T.K

Dear All,

Thank you for the information. In my company, we are implementing Oracle-based software so that we can create a common database for all employees. As I review their personal files, I notice that a lot of information is being concealed, and there are inaccuracies present. Many employees have changed addresses over the years, and we lack exact details. What should be our course of action now?

We have taken the initiative to have all employees fill out nomination and nomination change forms once again. Currently, employees are approaching me with various questions regarding their nominations. One common query is whether an employee with dependant parents can designate them as nominees.

Another inquiry comes from a female employee who supports her dependent mother. Is it possible for her to list her mother as a nominee?

Your prompt response would be greatly appreciated.

Regards,
Ranjeet

Ranjeet,

Advise them to put spouse and/or children as nominees wherever possible. In the case of an unmarried employee, let them nominate their mother or father. Only in rare cases should any other person besides these be nominated. Even for an unmarried employee, it is always advisable to nominate his/her mother, and if the mother is not alive, then nominate the father. This is my personal advice. Nomination in favor of more than one person is also valid. However, if the person is married, the nomination should be in favor of the spouse and children only, not in favor of the spouse and parents. Similarly, an unmarried employee should have both father and mother as nominees. But ensure that soon after his/her marriage, the nomination is changed in favor of the spouse.

Regards, Madhu.T.K

Dear Mdhu Sir,

Thank you so much for your advice. What should be done if an employee insists that only their parents should be the nominee?

For instance, in my company, a married female employee wishes to nominate her parents. What steps should be taken in this scenario?

Your suggestions would be greatly appreciated.

Regards,
Ranjeet

Insist on her nominating only her husband. A nomination other than her husband will not be accepted. For example, under the Employees' Pension Scheme, family refers to the spouse and children, not any other person.

Regards,
Madhu T.K.

Dear Madhu Sir,

You are always right. When you come across different situations, you will learn a lot. Can you provide me with the clause or section where it is written in the pension scheme or the PF Act?

What strategy should we adopt for gratuity? Can a person who has a family make their parents or others as nominees in it? Please suggest.

Regards,
Ranjeet

Dear Madhu sir,

After this comment, when I am going through the EPS scheme, one doubt is again in my mind. When a person leaves the service, we used to fill out forms No. 19 and 10C. If a person is leaving, is EPF giving all the amount to them, including the money in EPS? If not, what is the amount they are giving back? For example, if a person renders a minimum of 10 years of service, we used to fill out form No. 10D as well. Whether we are not able to withdraw that EPS money if we resign before 10 years? If not, what happens to that money? Is it transferred to a new account? Why is EPF taking so much time for transfer? I have come across situations where the amount is not transferred in 2-2 years. How can we help our employees in these cases? I have several other doubts, please suggest what to do.

Regards,
Ranjeet

An employee leaving the organization after 10 years of service will get a scheme certificate from the EPFO, which guarantees a pension upon attaining the age of 58 years. In case he gets employment elsewhere, he can surrender the scheme certificates, whereby his past service will be added to the present service, and the amount standing to the credit of the pension fund will automatically be transferred to the new account. Surrendering of the scheme certificate is done by submitting the same through the present employer. Therefore, there is no question of lapsing the amount in the pension fund. Even for employees leaving the establishment before completing 10 years of service, they can also opt for a scheme certificate.

There is a question in the form 10C, "Are you willing to accept a scheme certificate in lieu of withdrawal?" If you tick "yes," you will not receive the pension fund withdrawal; instead, you will be issued a scheme certificate by the Ministry of Labour showing full particulars of the member, such as his date of joining, salary at the time of exit, and other details, including those of his spouse and children. In the event of the unfortunate death of the holder of the scheme certificate, his family will be eligible to receive a pension.

Regards,

Madhu.T.K

Hi all,

If an employee puts in 10 years of service and leaves the organization with a scheme certificate for his pension, but then joins elsewhere and serves the scheme certificate for continuing his PF, should he also need to fill out a fresh nomination form?

Please clarify.

- Mohan

When one joins another organization, he has to surrender his scheme certificate, and a fresh nomination is to be filed to get a new PF number.

Regards,
Madhu.T.K

Dear All,

I have a query regarding the Nomination in Gratuity. I filled up Form 'F' for the first time when I was not married. However, after two years, I got married, and now I want to change my nomination. How can I change it? Is it possible? Which form should I fill out, or should I revise the same form?

I would appreciate your prompt response.

With warm regards,
Vinayak Patel

Dear Madhu Sir,

I have one query. An employee had nominated his mother before marriage and did not change the nomination to his wife's name. Is it compulsory to change the nominee after marriage?

Sanjib Datta

Normally, after marriage, the spouse will become the nominee automatically. However, it is advisable to send a new nomination form to EPF and collect a new nomination form in Form H of Gratuity Rules for your record.

Regards,
Madhu.T.K

If any female employee, due to harassment by her husband, does not live with him and as a result nominates her mother as a nominee, and then passes away, do her dues still go to her husband? What is the purpose of the nomination in this scenario? How can someone else decide who should be the nominee of your assets?

Thank you.

PF dues are paid by the Employees' Provident Fund Organisation and not by the employer. Without proper nomination given in the name of the mother, you cannot expect the PF to be settled.

In the case of gratuity, if a married woman wishes to cancel her earlier nomination given in the name of her husband, she can cancel it and renominate her mother or children.